SIPs Hit Record-high Amid 62% Decline In Debt MFs: AMFI Data
Despite a sharp drop in debt fund inflows, SIPs surge to Rs 23,547 crore, while equity mutual funds see a 3 per cent rise
The mutual fund industry experienced a sharp decline in net inflows for August, dropping by 43 per cent to Rs 1.08 lakh crore compared to Rs 1.89 lakh crore in July, according to data from the Association of Mutual Funds in India (AMFI) released on Tuesday. The decrease was largely attributed to a significant 62 per cent fall in inflows into debt mutual funds.
Despite the overall downturn, equity mutual funds saw a slight improvement with a 3 per cent rise in inflows, amounting to Rs 38,239.16 crore, even as equity markets remained relatively quiet.
Madhu Nair, Chief Executive Officer at Union Mutual Fund, noted, “Pure active equity schemes have crossed Rs 30 lakh crore in assets under management (AUM) across the industry during the month of August 2024. Equity flows for the month of August 2024 have been a mix of SIP flows, NFOs, and existing schemes. Thematic Funds still top the charts, while other categories like Large cap Fund, Multi cap Fund, Large and Midcap Fund, and Midcap Fund have also seen good net flows.
On the Fixed Income side, flows have been predominantly on the shorter end of the curve like Liquid, Overnight, and Money Market Funds, while some large treasuries seem to have taken positions in Gilt and Duration products in anticipation of an interest rate cut. Hybrid Funds as well as Passive strategies have also seen good flows during the month. Overall, strong flows and momentum continue across product categories for mutual funds in the month of August 2024, Nair added.
AMFI’s latest data reflected ongoing investor confidence in the mutual fund space. Large cap mutual funds recorded an inflow of Rs 2,636 crore in September, a marked increase from Rs 670 crore in August. Mid cap schemes also witnessed growth, with inflows rising to Rs 3,054 crore from Rs 1,644 crore in the previous month, while small cap funds saw inflows of Rs 3,209 crore, up from Rs 2,109 crore.
Sectoral funds reported an inflow of Rs 18,117 crore in August, slightly lower than the Rs 18,383 crore recorded in July.
Meanwhile, systematic investment plans (SIPs) contributions reached a record high in August, with inflows hitting Rs 23,547.34 crore, up from Rs 23,331.75 crore in July 2024. The number of SIP accounts also climbed to a new peak, with 9.61 crore accounts in August, compared to 9.33 crore in the previous month.
Value schemes attracted Rs 2,170 crore in August, compared to Rs 1,728 crore in the previous month. Flexi cap mutual funds also saw an increase, with inflows rising to Rs 3,513 crore from Rs 3,052 crore in July.
